REG-Capita PLC: Sale of speciality insurance businesses

CapitaAnnouncement

02/11/2021 07:10

2 November 2021

Capita agrees to sell speciality insurance businesses

Capita plc (Capita) today announces that it has agreed to sell its speciality
insurance businesses to Marco Capital Holdings (UK) Limited for an undisclosed
sum.

The sale comprises two businesses: Capita Commercial Insurance Services
Limited (CCIS); and Capita Managing Agency Limited (CMA).

CCIS provides outsourced business processes for the insurance industry across
areas including underwriting support, claims and client finance.

CMA provides regulatory approval and oversight to live and run-off syndicates
in the Lloyd’s insurance market.

The revenue and profit before tax for the speciality insurance businesses for
the year ended 31 December 2020 were £26m and £5m respectively. These
figures include a contract that is included in the sale and which is due to
end in 2022. The revenue and profit before tax of the speciality insurance
business excluding this contract were £20m and £3m respectively.

The senior management team and employees of CCIS and CMA will remain with the
businesses as they transfer to Marco’s ownership.

The sale is subject to regulatory approvals.

Deloitte FIG Corporate Finance acted as the exclusive financial adviser to
Capita.

Capita previously announced its intention to sell a number of non-core
businesses – including these two – to strengthen the balance sheet and
focus on its two core divisions, Capita Public Service and Capita Experience.

In the past 12 months we have announced exits from: Education Software
Solutions; our Employee Benefits business; Capita Life & Pensions Services
(Ireland); Axelos; Atlas Master Trust; and Secure Solutions and Services.

We continue to target £700m of non-core disposals proceeds by June 2022.
 

Jon Lewis, Capita’s Chief Executive Officer, said: 

“This is the seventh exit we have announced in the past 12 months. I am
really pleased with this progress.

“Today is another step towards a more focused and sustainable business for
the long term.

“Further progress on disposals will be announced as and when appropriate.”
 

ENDS

For more information, please contact:

Investor enquiries
Stuart Morgan
Director of Investor Relations
Tel: 07989 665484
Email: IRteam@capita.co.uk

Media enquiries
Capita external communications
Tel: 0207 654 2399
Email: media@capita.co.uk

About Capita

Capita is a consulting, transformation and digital services business. Every
day our 55,000 colleagues help millions of people, by delivering innovative
solutions to transform and simplify the connections between government and
citizens, businesses and customers. We partner with our clients and provide
the insight and cutting-edge technologies that give time back, allowing them
to focus on what they do best, and making people’s lives easier and simpler.
We operate across three divisions – Capita Public Service, Capita Experience
and Capita Portfolio – in the UK, Europe, India and South Africa. Capita is
quoted on the London Stock Exchange (CPI.L). Further information can be found
at: http://www.capita.com

About CCIS and CMA

Capita Commercial Insurance Services Limited (CCIS) is a large-scale insurance
specialist, providing outsourced business process services across areas
including underwriting support, claims and client finance.

Capita Managing Agency Limited (CMA) is an independent turnkey managing
agency, providing oversight and regulatory services to live and run-off
syndicates in the Lloyd’s insurance market.

About Marco

Marco is a European P&C Legacy solutions insurance group headquartered in
Malta. The group comprises the carriers Marco Insurance PCC Limited in Malta,
a Protected Cell Company, British Reserve Insurance Company Limited in the UK,
Humboldt Re in Guernsey and Marco Insurance Limited in Malta.

Marco offers reinsurance and finality solutions to re/insurance carriers to
optimise - balance  sheet efficiency (i.e. both capital & risk); operational
management; and achieve strategic objectives - by acquiring loss reserve
portfolios (discontinued business or long-tail) through reinsurance, portfolio
transfers and M&A (acquiring entities). Marco is Europe focused and the P&C
strategy encompasses Legacy business opportunities written worldwide by
European counterparties, otherwise risks located in Continental Europe, the UK
and Lloyd’s of London.

Marco is supported by €500m initial committed equity capital and offers a
leading proposition to carriers seeking finality and balance sheet
optimisation solutions in the European P&C arena. Funds managed and/or advised
by Oaktree Capital Management, L.P. are Marco’s majority investors.



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